When investing app Openfolio was combing through data from 20,000 of its users, one trend in particular jumped out: Teachers were doing really, really well.
In fact, educators and education administrators at every level of schooling outperformed 80% of all investors over the course of a year, including investors in the tech and finance industries and in government.
Over the course of a year ending in February 2015, Openfolio found that the average investor was up 7.6% ... while on average, teachers had gained 10.2%.
Investors in the technology industry were the next-highest at 8.3%, investors working in finance trailed with 6.9%, and government workers came in last, with 3.4%.
Here, Openfolio has shared some of the lessons to be learned from the unlikely cohort's success.
First of all, teachers kept their hands off their investments. Investment advisor SigFig has found that the most successful investors are the ones who leave their money alone, and the fact that teachers trade 30% less than the average investor while still getting higher returns supports that finding.
Finally, while it isn't as clear-cut a lesson as the above conclusions, Openfolio noticed that teachers are more likely than the average investor to put their money in fields like healthcare, pharmaceuticals, and biotechnology, and less likely to invest in financials.
Libby Kane is a personal finance expert who has reported and edited stories about money for more than 10 years. She previously held the Certified Financial Education Instructor (CFEI) certification issued by the National Financial Educators Council.Experience She has written and edited articles on everything from investing tips to model budgets and has interviewed dozens of authors, financial planners, and early retirees to share their advice, experiences, and insights with a global audience. Before joining Business Insider in 2014, she was an associate editor at LearnVest, a personal finance site to help women learn about money. Her work has appeared on sites such as MSN, AOL, Forbes, Slate, and The Street.Her team at Business Insider has tackled projects including:• Women of Means, a series about women taking control of their finances• Inside the Racial Wealth Gap, an exploration of the causes, effects, and potential solutions of the racial wealth gap in the US (finalist, Drum Award, "Editorial Campaign of the Year," 2021)• Strings Attached, a series of essays from people who have left insulated communities and how that journey affected their relationship with money• Master Your Money, a year-long guide for millennials on how to take control of their finances (first runner up, Drum Award, "Best Use of Social Media," 2022)• The Road to Home, a comprehensive guide to buying your first house (silver award winner, National Association of Real Estate Editors, "Best Multi-Platform Package or Series – Real Estate," 2022)Libby believes in one universal truth about money: Advice is never for everyone. The best strategies, tools, and products depend on your preferences, financial situation, history with money, and goals.ExpertiseHer expertise includes:• Behavioral finance• Early retirement• Budgeting• Saving moneyEducationLibby holds a bachelor's degree from Wellesley College.Outside of personal finance, Libby enjoys reading, baking, and walking her dog.
